Variable Interest Entities

3 Months Ended

Sep. 30, 2021

Accounting Policies [Abstract]

VARIABLE INTEREST ENTITIES

NOTE 17 – VARIABLE INTEREST ENTITIES

In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision-making ability. All VIEs with which a company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIE. The primary beneficiary is required to consolidate the VIE for financial reporting purposes.

Green Nevada through one of its subsidiaries, Jinong, entered into a series of agreements (the “VIE Agreements”) with Yuxing for it to qualify as a VIE, effective June 16, 2013.

The Company has concluded, based on the contractual arrangements, that Yuxing is a VIE and that the Company’s wholly-owned subsidiary, Jinong, absorbs a majority of the risk of loss from the activities of Yuxing, thereby enabling the Company, through Jinong, to receive a majority of Yuxing expected residual returns.

On June 30, 2016 and January 1, 2017, the Company, through its wholly-owned subsidiary Jinong, entered into strategic acquisition agreements and into a series of contractual agreements to qualify as VIEs with the shareholders of the sales VIE Companies.

Jinong, the sales VIE Companies, and the shareholders of the sales VIE Companies also entered into a series of contractual agreements for the sales VIE Companies to qualify as VIEs (the “VIE Agreements”).

On November 30, 2017, the Company, through its wholly-owned subsidiary Jinong, exited the VIE agreements with the shareholders of Zhenbai.

On June 2, 2021, the Company, through its wholly-owned subsidiary Jinong, exited the VIE agreements with the shareholders of Xinjiang and Xiangrong.

As a result of these contractual arrangements, with Yuxing and the sales VIE Companies the Company is entitled to substantially all the economic benefits of Yuxing and the VIE Companies. The following financial statement amounts and balances of the VIEs were included in the accompanying unaudited condensed consolidated financial statements as of September 30, 2021 and June 30, 2021:

	September 30,		June 30,
	2021		2021
ASSETS
Current Assets
Cash and cash equivalents	$	211,664	$	253,566
Accounts receivable, net		30,182,643		35,360,138
Inventories		6,903,981		6,681,758
Other current assets		382,806		477,693
Advances to suppliers		843,928		277,563
Total Current Assets		38,525,022		43,050,718
Plant, Property and Equipment, Net		132,101		138,662
Other assets
Intangible Assets, Net		600,742		673,213
Total Assets	$	39,257,865	$	43,862,593
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Accounts payable		11,385,469		14,736,412
Customer deposits		558,649		167,059
Accrued expenses and other payables		9,216,447		9,162,742
Total Current Liabilities	$	21,160,565	$	24,066,213
Total Liabilities	$	21,160,565	$	24,066,213
Stockholders’ equity		18,097,300		19,796,380
Total Liabilities and Stockholders’ Equity	$	39,257,865	$	43,862,593

	Three Months Ended September 30,
	2021		2020
Revenue	$	4,542,143	$	9,359,707
Expenses		6,273,905		8,134,358
Net income (loss)	$	(1,731,762)	$	1,225,349